Large container ships queue around the outskirts of the Los Angeles Port, biding their time until slots for docking become available. Despite a 90-day hold implemented on the ‘Liberation Day’ tariffs that were originally introduced on the 2nd of April by the Trump administration, the continuous application of additional tariff regulations against China causes persistent instability in worldwide markets. The most significant impacts are observed at the most substantial American ports which are subjected to newly proposed harbor fees by the U.S. Trade Representative office. These proposed charges range remarkably from one to three and a half million dollars for each Chinese-built ship docking at any American port.
The U.S. Trade Representative office’s goal is to implement these extraordinary harbor fees by the 14th of October, 2025. The process of ratification of these measures is set to begin in mid-May. The aftermath of these exorbitant harbor fees is expected to be devastating, affecting both domestic and overseas workers. With approximately $3 trillion of U.S. imports and the jobs connected to them at stake, the future of the American economy largely hangs in the balance.
Gene Seroka, the executive director of the Los Angeles and Long Beach Ports, has expressed serious concern over these developments. According to Seroka, the potential impact of these proposals is immense. Approximately one in every nine jobs in Southern California is linked to the activities of these ports, equating to around a million daily workers. Seroka suggests that every four containers processed by the ports directly generates a job; thus, a reduction of even 10% in cargo could begin to erode the job market.
Workers are becoming increasingly conscious of the fact that global corporations will very likely try to circumvent the additional costs that tariffs and port fees will introduce by either transferring these costs to customers or completely discontinuing certain cargo shipments. Under these circumstances, which coincide with already soaring costs of everyday goods, the introduction of tariffs and port fees is only expected to exacerbate the present hardships faced by workers.
The International Longshore and Warehouse Union (ILWU), which represents a significant portion of Canada and the U.S.’s West Coast dock workers, has unexpectedly voiced its support for the port fees during an International Trade Commission hearing on the 24th of March in Washington. For the trucking industry in the U.S., however, these trade measures could prove catastrophic. As per industry insiders, truckers are rapidly noticing a collapse in container volumes. Forecasts suggest that by May, the volume of port freight from California could be virtually non-existent.
While some suggest that U.S. shipbuilders can simply replace the Chinese vessels subjected to tariffs and port fees, this expectation seems overly optimistic given the reality of the industry. A stark contrast exists between the capacities of vessels built by Chinese and South Korean corporations compared to those built in the U.S. For example, 20 of the most spacious container ships, either constructed or presently managed by Chinese and South Korean corporations, average a capacity of approximately 22,500 TEU (twenty foot equivalent unit) or more. Meanwhile, the largest U.S.-built container ship, the Daniel K. Inouye, holds a comparatively modest 3,600 TEU capacity.
A report from the U.S. Trade Representative’s office provides further insight into the disparities within the industry. Presently, the U.S. ranks 19th globally in commercial shipbuilding, producing less than five ships annually. This figure is a far cry from the 70 ships produced each year during the 1970s, a period when the U.S. led the world in this sector and globalization was only just starting to take root.
China’s current shipbuilding capabilities are overwhelmingly advanced, constructing more than 1,700 ships annually. According to reports, China received 74 percent of all new shipbuilding orders in the 2024 fiscal year. These statistics reinforce the dominance of China in the industry and underscore the significant challenges the U.S. faces through the imposition of tariffs and port fees.
Global marketplace players are actively exploring alternative solutions to manage these challenges, including potentially sourcing grain from exporting regions like Latin America or the Black Sea area to bypass the U.S.’s tariffs and port fees on Chinese-made vessels. Interestingly, congressional support for these measures against China is not limited to any one political party; it’s a bipartisan issue.
A formal investigation concluded that China maintains an ‘unreasonable’ advantage over other players in the maritime, logistics, and shipbuilding sectors. This perceived advantage is held responsible for excessively disadvantaged U.S. companies, workers and, by extension, the overall U.S. economy.
These measures, aiming to protect the U.S.’s interests over China’s purported dominance, are part of an underlying effort to fortify American supply chains in preparation for a hypothetical large-scale war against China. These potential conflicts could inevitably involve significant naval engagements.
The difficulties encountered by the American workforce are not rooted in foreign labor forces like those in Canada, Mexico, or China. However, they are instead a result of the capitalist-class agendas in every nation, designed to prioritize corporate benefits. The only feasible resolution is to forsake ‘America First’ and other nationalist ideologies, and to encourage the unification of the global workforce against capitalist exploitation and the threat of war and dictatorship.
This necessary response against capitalist prioritization and authoritarianism requires a revolt against the corporate-friendly bureaucracy of the trade unions. It necessitates the development of the International Workers Alliance of Rank-and-File Committees, thereby displacing the bureaucracy to reinstate power at the grassroots level.
It is clear, navigating these waters of international trade, tariffs, and labor rights is not a task for the faint-hearted. The impacts underline the need for resilience and unity among the global working class, and the importance of focusing on humanitarian issues above corporate interests.
Whatever arises from these circumstances surely needs to be a solution that promotes global cooperation and prosperity. The workforce, both domestic and international, can hopefully find strength through unity and a shared determination to improve conditions, even in the face of adversities such as tariffs, trade wars, and economic policies.